This helps explain the rapid reversal of economic growth that has descended upon the U.S. Because these effects hit both consumers and producers, changing course will become increasingly difficult.

Seemingly erratic U.S. policymaking may be weakening the dollar as much as any potential ‘Mar-a-Lago accord’ could have hoped, but risks taking U.S. asset prices down with it.

Wall Street analysts predict a turbulent short-term for the US economy, with lower growth and higher inflation. Consumer ...